Indonesia’s 3.6 quadrillion rupiah budget for next year will prop up consumer, food and health-care stocks as President-elect Prabowo Subianto is set to take office.
Investors see the spending plan as ensuring policy continuity between Prabowo and outgoing President Joko Widodo. The blueprint, delivered by Jokowi on Friday, features some of Prabowo’s priority programs that won him the election such as his free meal program for students, as well as the current administration’s focus on green energy and commodity downstreaming.
Officials aimed to address “middle income issues and that will push higher discretionary spending,” said Jeffrosenberg Chen Lim, head of research at PT Maybank Sekuritas Indonesia. “As long as the economy is humming, the population is going to spend more money.”
The benchmark Jakarta Stock Exchange Composite Index ended Friday 0.3% higher and remained near its all-time high. The gauge has advanced more than 47% since Jokowi became president in 2014.
Here’s a look at the stocks that may benefit or lose out from the budget:
Winners
Losers
With assistance from Soraya Permatasari and Matthew Burgess.
This article was generated from an automated news agency feed without modifications to text.
